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Graduation time is here, what should you do about health insurance for your new grad??

05-07-2010 by Colleen King

May into June is such a great time for families as their kids are getting ready to graduate from high school or college. A time of pride, sense of accomplishment, it’s great. As I drive around the LA area I see the signs of upcoming graduation ceremonies and it takes me back. We won’t go into how far back.

But it’s also the time to figure out what to do about health insurance. If your high school grad is going to college, then of course they can stay on your group health plan if you want them to. But in general the landscape has changed. Many people are unemployed, or their companies have dropped their health plans. Or it is way too expensive to keep dependents on the plan. Or new grads are coming into an environment where jobs are scarce, and jobs with benefits, even more scarce.

Now that the health care reform bill has passed, one of the FEW things that comes into effect this year is allowing overage dependents up to age 26 to stay on their parents’ plan. That is supposed to to go into effect September 23 this year, but most major carriers have said they will implement this early. But should you do it?

Check the cost of doing this–if you only have one child it might be more expensive to go that way. if you have more than one child on the group plan, usually it is the same cost regardless of the number of kids. So ask. Many times it is more cost effective to go to an individual plan, but if you child has a health condition that will keep them from getting coverage, then leaving them on the plan is the way to go.

Next, some options if you decide to buy insurance on your own

A 3 minute Video on what’s happening this year because of health care reform.